Tax Credit overpayment - can they demand?

Sharonsh23

I owe £9000 in overpaid tax credits which I am paying back £15 per month. I have 2 children (not dependent) but one is at University living at home and I am paying the other's car insurance. Do the Tax Credits People have the right to demand that you pay more and do they have the right to demand to know what other debt I have, to whom and how much? The lady on the phone was quite hostile and I felt upset and harrased.

Merlin139

Sharonsh23 wrote: »

I owe £9000 in overpaid tax credits which I am paying back £15 per month. I have 2 children (not dependent) but one is at University living at home and I am paying the other's car insurance. Do the Tax Credits People have the right to demand that you pay more and do they have the right to demand to know what other debt I have, to whom and how much? The lady on the phone was quite hostile and I felt upset and harrased.

I think you should be very grateful that you have 50 years to pay it back without interest!

marliepanda

Sharonsh23 wrote: »

I owe £9000 in overpaid tax credits which I am paying back £15 per month. I have 2 children (not dependent) but one is at University living at home and I am paying the other's car insurance. Do the Tax Credits People have the right to demand that you pay more and do they have the right to demand to know what other debt I have, to whom and how much? The lady on the phone was quite hostile and I felt upset and harrased.

Almost certainly. They have decided after your expenses that you can afford £15 a month (whenever that was decided)

Clearly they now need an update, and if you can afford to pay your childs car insurance (FYI my parents claim no benefits and my Father works full time, and I have never had my car insurance paid by my parents, its not a normal thing) then you can afford to pay more back towards your debt.

As stated, as it stands you will take 50 years to pay back which is insane as no doubt the payments were made over a much shorter time. You need to think about paying your debts back before paying out unneccessary costs for your children which you cannot afford.

midnight_express

The payments you are making are a joke. They should be charging more than that in interest. Pay what you owe and they won't "harrass" you. Yes they are entitled to demand access to your financial information and to demand higher payments.

NYM

Sharonsh23 wrote: »

I owe £9000 in overpaid tax credits which I am paying back £15 per month. I have 2 children (not dependent) but one is at University living at home and I am paying the other's car insurance. Do the Tax Credits People have the right to demand that you pay more and do they have the right to demand to know what other debt I have, to whom and how much? The lady on the phone was quite hostile and I felt upset and harrased.

I believe they have a right to ask you to provide an account of your updated income and expenditure.

£9000 is a considerable sum, did you appeal it?

Darksparkle

Recovery process is explained here - https://revenuebenefits.org.uk/tax-credits/guidance/how-to-deal-with-hmrc/dealing-with-debt

If you want to repay over more than 10years then yes a full income and expenditure is required.

parkrunner

Sharonsh23 wrote: »

I owe £9000 in overpaid tax credits which I am paying back £15 per month. I have 2 children (not dependent) but one is at University living at home and I am paying the other's car insurance. Do the Tax Credits People have the right to demand that you pay more and do they have the right to demand to know what other debt I have, to whom and how much? The lady on the phone was quite hostile and I felt upset and harrased.

Stop paying his/her car insurance and you can pay back considerably more each month and clear the debt much quicker.

meer53

I was overpaid by £900 and i have to pay back £30 per month so i'd keep quiet if i were you !

pinkladyvenus

have a look at the info on this site it might help

http://www.taxcc.org

CakeCrusader

I'm repaying 2k at £60 a month and they are reducing my award too. You're very lucky, I wouldn't push it!!

BAFE

How? Just how can you possibly have been overpaid by £9000???????